TY  - RPRT
        AU  - Cabral, Sónia
AU  - Garcia, Joana
AU  - Miranda, Raquel
AU  - Peralta, Susana
AU  - Santos, João Pereira dos
        TI  - Treasure Islands, Real Jobs? Workers and Anti-Avoidance Policies in a Tax Paradise
        PY  - 2025/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17799
        UR  - https://www.iza.org/publications/dp17799
        AB  - What type of employment exists in low-tax jurisdictions? How are employment and individual workers affected by reforms aimed at better aligning profits with real activities? Using a unique employer-employee dataset for Zona Franca da Madeira, a tax paradise on a Portuguese island, we show that workers are highly educated, perform specialized tasks, and benefit from a wage gap, particularly at the top. A reform designed to link profits more closely with real substance resulted in worker exits, while those who remained experienced wage increases and a higher likelihood of working for multiple firms simultaneously. New hires faced more precarious conditions, earning, on average, 30% less than incumbents, often working under temporary contracts. These results offer insights into policies promoting economic substance in low-tax jurisdictions.
        KW  - substance requirements
KW  - labor market
KW  - corporate tax avoidance
KW  - matched employer-employee data
        ER  -